U.S. Postal Service (USPS)–OIG,: Former CEO of Tennessee-Based Telemarketing Company Sentenced to Federal Prison On July 2, 2018, Timothy Thomas, 55, of Brentwood, Tennessee, was sentenced to 66 months in prison for marketing and misrepresenting health insurance plans. Thomas was ordered to forfeit $1.5 million and to pay more than $2.5 million in restitution to the victims of the fraud scheme.

OIG Investigations Newsletter Volume XVII, June 1 – July 31, 2018 

Report allegations of fraud, waste, and abuse concerning DOL programs and operations to the OIG hotline via 800-347-3756 or www.oig.dol.gov. 2 

This was a joint investigation with the U.S. Postal Service (USPS)–OIG, the U.S. Department of Veterans Affairs (VA)–OIG, the U.S. Department of Homeland Security (DHS)–OIG, and the IRS Criminal Investigation Division (IRS-CI). United States v. Jeffrey Eugene Rose Sr. (S.D. Texas) 

Former CEO of Tennessee-Based Telemarketing Company Sentenced to Federal Prison On July 2, 2018, Timothy Thomas, 55, of Brentwood, Tennessee, was sentenced to 66 months in prison for marketing and misrepresenting health insurance plans. Thomas was ordered to forfeit $1.5 million and to pay more than $2.5 million in restitution to the victims of the fraud scheme. 

Thomas operated and controlled United Benefits of America, LLC, which was also known as United States Benefits and Health Care America. From at least 2007 to 2010, Thomas hired salespeople to sell so-called “association memberships” created by third-party companies such as International Association of Benefits and Consumer Driven Benefits of America. These memberships included bundled benefits, such as limited-benefit health plans, prescription drug discount cards, accidental death and dismemberment benefits, and lifestyle benefits, such as rental car discounts. Thomas targeted sales to customers who had been denied traditional health insurance because of preexisting conditions. The sales script used by Thomas portrayed the memberships as equal in quality to traditional group health insurance obtained via employment, omitting the fact that the limited-benefit health plans left members with the vast majority of the financial risk. This was a joint investigation with the FBI, the United States Postal Inspection Service, and the Employee Benefits Security Administration (EBSA). United States v. Timothy W. Thomas (M.D. Tennessee)

Semiannual Report to Congress, October 1, 2017 – March 31, 2018,

Office of Inspector General, Department of the Treasury